Zoetis (ZTS) has moved up nicely in recent months, supported by increasing volume and positive technical indicators.
With chart support in the $54-$53 area, this pullback could be used to do some buying, anticipating higher prices in the weeks and months ahead.
In this one-year daily bar chart of ZTS, above, we can see a rally in March and April followed by a consolidation and then another rally in July and August. We see another consolidation until December and prices begin another rally phase. Prices are above the rising 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line rises from March to September and then makes a shallow dip in November. When prices turn north in December, the OBV line moves higher at a steeper pace, telling us that buying has become more aggressive than earlier in the year. The MACD oscillator turns bullish in December as it crosses above the zero line.
This weekly chart of ZTS, above, is also bullish. Prices made a consolidation pattern from early 2015 and broke out in early 2016 and pulled back to the breakout area around $48. ZTS is above the rising 40-week moving average line. The OBV line on this tim frame has been rising the past three years and the MACD oscillator is bullish.
Bottom line: Use this dip or pullback on ZTS to do some buying below $52.